Perth property market showed positive signs in March

New

01 April 2020

Perth’s property market has seen another growth to the CoreLogic Hedonic Home Value Index, which is up 0.5 per cent for the month and 0.9 per cent for the quarter, despite the recent economic changes we have seen due to the coronaviurs (COVID-19) outbreak.

REIWA President Damian Collins said it was clear
that we were heading towards a recovery right up until the last week of the
month.

Sales listings

“March showed the Perth market continued its recovery with stock levels down
one per cent than last month and 25 per cent lower than this time last year,”
Mr Collins said.

“There were 12,294 properties listed for sale on reiwa.com, however this
number will continue to fall as we navigate through this uncertain time.

Sales activity

“In the last week we have seen a significant drop in the number of sales
transactions, with March having a total of only 2,205 sales for the month,
which is down 23 per cent and is down 24 per cent from an annual perspective.”

Despite the positives we have seen this month, it is clear the full
impacts of coronavirus have not yet hit the property market.

Coronavirus support

“Unless there is something done to encourage people to buy and sell, the
sales volume will continue to decline, which is why we are calling on the State
and Federal Government to consider introducing a 75 per cent stamp duty
reduction for six months on all properties,” Mr Collins said.

“We are hopeful that the government packages announced will keep the
economy going and property prices will hold, but we will watch and continue
urging the government to offer stamp duty relief if transaction volumes
continue to fall further.”

Perth rental market

Perth’s rental market has remained stable this
month despite the coronavirus pandemic, which demonstrates just how important housing
is to our community.

REIWA President Damian Collins said Perth’s median
rent remained stable at $360 per week in March after last month experienced the
first increase.

Rental listings

“Listings for rent were down seven per cent in
March with 4,171 listings for rent on reiwa.com, however we did see an increase
in leasing activity for the month which was up one percent and six per cent
from an annual perspective,” Mr Collins said.

Ban on rental evictions

“With the Federal Government’s announcement on a
moratorium on rental evictions of residential and commercial tenants in
financial distress due to coronavirus for the next six months, we can expect activity
to lower.

“While we understand this initiative and support
the government’s decision to implement it, it is important that all tenants understand
that they must continue to pay rent where their businesses or jobs have not
been significantly affected by coronavirus. We also await further announcements
by the government on rent assistance for those property owners.”

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